Quito, June 12, (Andes) – Ministers of Finance from five countries of the South American Union of Nations (Unasur, Spanish acronym) convene this Wednesday in Caracas to begin operations of the Banco del Sur, an entity that will start with 7 billion USD, Ecuadorian Minister Ricardo Patino confirmed to the Andes Agency on May 29th.
The financial representatives from Argentina, Bolivia, Brazil, Ecuador, and Venezuela convene this Wednesday in the Central Bank of Venezuela from 10:30 AM (3:00 PM GMT) to initiate operations of the financial entity, the local Venezuelan press informed.
Ecuadorian Minister Ricardo Patino leads the delegation of the South American country for this meeting and is accompanied by the minister of Political Economy, Patricio Rivera, and of Finances, Fausto Herrera.
The Banco del Sur, a regional financial initiative of the Unasur countries, will begin operations with an initial capital of 7 billion USD, of which Ecuador contributed 400 million USD, and is one of the seven primary, contributing countries.
“The capital offered by the seven countries is 7 billion USD; we will start with that. Each one of the big ones gave 2 billion USD: Venezuela, Brazil, and Argentina; Ecuador and Uruguay gave 400 million USD; and Bolivia and Paraguay gave 100 million USD,” the Ecuadorian minister of foreign affairs stated.
The countries have planned to establish a launch date this Wednesday, based on the capital that each member country must contribute, South American TV station Telesur confirmed.
Days prior, Minister Ricardo Patino had expressed that the new bank “can serve to alleviate the debt of a small or large country and will not have to submit itself to the will and conditionality of the International Monetary Fund (IMF).”
The Banco del Sur is an initiative of the historic leader of the Bolivarian Revolution, Hugo Chavez, who made it official in 2007 when he signed the memorandum for its creation together with Argentinian president Nestor Kirchner, accompanied by Bolivia, Ecuador, Uruguay, Brazil, and Paraguay.
The Banco del Sur has a maximum approved capital of 20 billion USD. The principal branch of the economic entity will be located in Caracas and will also include two sub-branches, in the cities of Buenos Aires (Argentina) and La Paz (Bolivia).